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How the Latest GST Reforms Make Homebuying Smoother

  • userBy Dosti Realty
  • Dosti blog dateNovember 8, 2025
  • Dosti Blog category

The process of buying a home in India has become more transparent and predictable thanks to the latest reforms in the Goods and Services Tax (GST) structure. Introduced to simplify indirect taxation, GST continues to evolve, bringing greater clarity and uniformity to the real estate sector.

For homebuyers exploring new projects in Mumbai, Thane, or Pune, the updated GST norms in 2025 streamline taxation and make financial planning much easier. Alongside, a decline in raw material costs — including cement, concrete, and paints — has further improved affordability. Developers like Dosti Realty have been quick to reflect these changes, ensuring real savings for their customers.

A Quick Recap: What is GST in Real Estate?

The Goods and Services Tax (GST), implemented in 2017, consolidated various indirect taxes into one unified system. In real estate, GST primarily applies to under-construction properties and specific services linked to housing, while ready-to-move-in homes with an Occupation Certificate (OC) remain exempt.

This structure helped bring consistency across states, but over time, homebuyers sought further simplification. The recent GST reforms of 2025 address those concerns by offering improved transparency, standardised rates, and easier compliance for both developers and buyers.

GST Rates for Real Estate in 2025

Under the revised structure, GST rates remain uniform across India, meaning buyers enjoy the same tax treatment regardless of location. Below is the current framework:

Property Type

GST Rate

ITC Allowed

When GST Applies

Criteria

Affordable housing under construction

1%

No

On payments before OC or CC

Price up to ₹45 lakh and carpet area up to 60 sq. m (metros) or 90 sq. m (non-metros)

Non-affordable housing under construction

5%

No

On payments before OC or CC

For properties exceeding affordable limits

Commercial unit within residential project (RREP)

5%

No

On payments before OC or CC

Commercial area ≤ 15% of total carpet area

Commercial property not part of RREP

12%

Yes

On payments before OC or CC

ITC applicable as per GST rules

Ready-to-move residential property with OC 

0%

NA

After OC or resale

No GST; only stamp duty and registration

Parking, clubhouse, or amenities billed separately

18%

Depends

If billed as services

Applicable when not part of property value

RWA maintenance above ₹7,500/month per member

18%

NA

If society turnover > ₹20 lakh/year

Taxable under CBIC rules

Key Benefits of the Latest GST Reforms

The new GST updates not only simplify rates but also deliver clear advantages that enhance the homebuying experience.

1. Greater Price Transparency

Developers now present GST-inclusive pricing upfront, helping buyers make informed comparisons. Whether you are looking for a 1 BHK in Thane or a 2 BHK in Dosti Greater Thane, you can see the total cost clearly, including the tax component.

Dosti Realty First Movers in Value Transparency

Dosti Realty is among the first developers to proactively pass on GST savings to customers — a move that reflects its deep understanding of homebuyer needs and a strong commitment to fairness, trust, and transparency. This decision sets Dosti apart from competitors who may retain these benefits as additional margins. By adjusting prices in real time as raw material costs in construction have gone down, Dosti ensures that every buyer enjoys authentic value for money.

2. Direct Customer Benefit

The GST rate cut on key construction materials like cement, concrete, and paints — all reduced from 28% to 18% — lowers overall project costs. As material procurement becomes cheaper, Dosti Realty has promptly passed on this reduction in pricing, translating these changes into real, measurable savings for homebuyers — not just a marketing message.

3. Simplified and Memorable Offer

To make these benefits easier to understand, Dosti Realty communicates the message simply:
 “Pay Just 1% GST — Real Homes, Real Savings.”
It’s easy to remember, easy to trust, and built on reforms that are truly real.

4. Reduced Financial Burden on Affordable Housing

With just 1% GST on affordable homes, the government continues to support first-time buyers and middle-income families. And by actively reflecting input cost reductions, Dosti Realty empowers families to own their dream homes sooner, without straining their budgets.

5. Ease of Calculation and Uniformity

The uniform GST structure eliminates confusion about state-specific taxes. Whether your property is in Mumbai, Thane, or Pune, the applicable rate remains consistent. Combined with Dosti’s transparent billing, buyers can now plan finances with total clarity.

6. Boost for Ready-to-Move-In Homes

Properties with an Occupation Certificate (OC) remain exempt from GST, ensuring even greater affordability. Ready-to-move-in homes from Dosti Realty offer both convenience and financial ease — making them ideal for those seeking immediate possession.

7. Improved Developer Compliance

Developers now follow more transparent GST reporting practices, but Dosti Realty takes it a step further. We go beyond compliance to ensure our customers receive direct value from GST benefits. For Dosti West County, we are passing on the GST savings so that buyers only need to pay 1% GST. Similarly, for Dosti Greater Thane, we are also passing on the GST benefits directly to our customers, ensuring complete transparency and fairness in pricing.

Would you like me to make it sound slightly more promotional or keep it factual and straightforward like this?

Empowering Customers and Building Trust

Every rupee saves matters, especially for young and middle-income families. By sharing GST benefits and reflecting input cost reductions directly in pricing, Dosti Realty demonstrates its long-term commitment to customer welfare. This approach builds not just sales, but lasting goodwill and brand trust.

These measures make purchasing a home from Dosti Realty a smooth, predictable, and trustworthy experience.

Final Thoughts

The GST reforms of 2025 mark a significant step toward a transparent and standardized real estate ecosystem. Combined with lower raw material costs and Dosti Realty’s leadership in passing on these savings, the homebuying experience has never been more rewarding.

With trusted developers like Dosti Realty leading the way in value transparency, compliance, and customer-first practices, buyers can look forward to a journey that is not just simpler, but also smarter and more secure.

FAQ

1. How have the latest GST reforms in 2025 made homebuying easier?

The 2025 GST reforms simplify taxation across the real estate sector by ensuring uniform rates and clearer payment structures. Coupled with a fall in raw material prices, homebuyers now enjoy greater transparency, predictable financial planning, and reduced confusion over taxes.

2. Does GST apply to amenities like parking or clubhouse facilities?

Yes, if parking, clubhouse, or maintenance services are billed separately from the property value, they attract 18% GST. If included in the total property price, the property’s applicable GST rate (1% or 5%) applies.

3. How do Dosti Realty projects benefit from the new GST reforms?

Dosti Realty has immediately reflected the reduction in GST on construction materials in its pricing. Buyers at projects such as Dosti West County and Dosti Greater Thane enjoy transparent GST-inclusive rates and flexible payment plans — ensuring real savings, not just festive offers.

4. What are the key advantages of buying an under-construction property under the new GST system? 

Under the current system, buyers pay either 1% (affordable housing) or 5% (non-affordable housing) GST without ITC. These simplified rates make cost calculations easy, and developers like Dosti Realty ensure all benefits from reduced input costs are passed on to buyers.

5. Is GST applicable on resale or secondary market properties?

No, GST does not apply to resale or secondary market properties. The tax is levied only on under-construction properties where payments are made before the Occupation Certificate (OC) or Completion Certificate (CC).